Under the Lead Inspector General framework, the Inspectors General for the Department of Defense, Department of State, and the U.S. Agency for International Development conduct oversight of and report on the overseas contingency operation "Operation Inherent Resolve" (OIR). The mission of OIR is to advise, assist, and enable partner forces until they can independently defeat ISIS in designated areas of Iraq and Syria, in order to set conditions for long-term security cooperation frameworks. The broader counter-ISIS campaign includes supporting the Iraqi government and local Syrian partners with civilian-led stabilization activities. This report also discusses the planned, ongoing, and completed oversight work conducted by the Lead IG agencies and our partner oversight agencies during the quarter.
On July 1, State assumed responsibility for administering most foreign assistance, including programs currently financed by and functions previously managed by USAID. Meanwhile, a reduced USAID workforce worked to close out contracts for programs terminated as a result of the foreign assistance review.
The U.S. Government terminated five USAID awards that had supported al-Hol returnees or communities to which former al-Hol residents had returned. As of the end of the quarter, USAID staff reported that all USAID stabilization programming in Syria and Iraq, including those supporting the al Hol Action Plan and awards for third party monitoring, had been terminated. The U.S. Government had obligated more than $107 million for these programs before their termination.
At the start of 2025, USAID BHA Syria managed 29 programs valued at $631,172,513. By the end of the quarter, 16 programs—worth $218,174,924—were terminated, while 14 remained active, totaling $412,998,589. The pause and subsequent terminations
resulted in the freezing of payments to implementing partners for both work that had already been completed, and advance payment for ongoing work. As a result, many partners paused operations and the delivery of lifesaving humanitarian assistance, and in some cases terminated staff and closed offices, according to USAID BHA.
USAID Bureau for Humanitarian Assistance (BHA) reported it has four active awards remaining in Iraq, many of which were affected by stop-work orders and now require no cost extensions to bridge the transition to State. Three USAID BHA awards, totaling more
than $13 million in obligations, have been terminated.
The expiration of USAID BHA’s Iraq third-party monitoring contract poses challenges for monitoring ongoing programs in a non-permissive environment, as many implementer activities remain inaccessible to USAID staff. Most partners maintain internal monitoring and oversight mechanisms, with some utilizing their own third-party monitoring arrangements.